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SuccessGen Z

Gen Zers are so terrified of a recession that they’re ditching doom spending, ordering Happy Meals, and using ChatGPT for free therapy

Emma Burleigh
By
Emma Burleigh
Emma Burleigh
Reporter, Success
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Emma Burleigh
By
Emma Burleigh
Emma Burleigh
Reporter, Success
Down Arrow Button Icon
April 21, 2025, 11:58 AM ET
Worried young woman on her phone.
Young people are preparing for a recession with tricks like dumpster diving, fast-food rewards, and “no-buy lists.”izusek/Getty Images
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  • Gen Z is preparing for a potential recession with “no-buy lists” and other thrifty habits. They’re turning to free AI therapists, fast-food survey rewards, and dumpster diving to weather the downturn—especially as they’re the most vulnerable to layoffs and rising prices. 

The “lipstick effect” has historically been a popular way to gauge a recession against spending habits—with shoppers opting to buy smaller luxuries, like makeup, during a downturn versus cars and property. 

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But Gen Zers are redefining their recession experience through all the things they won’t buy. From turning to free ChatGPT bots in lieu of costly human therapists, to creating “no buy” lists including clothes and beauty treatments, they’re proving they’re willing to do anything to save a buck.

“Right now there’s a lot of economic uncertainty,” TikTok user @whatshesaves said in a video, adding that she is tackling $9,000 worth of debt. “I am actually trying to go on this journey of eliminating as many things out of my life, in living more intentionally, not just going shopping.”

Her TikTok video clearly resonated with what a lot of young people are feeling right now, raking in over 2.6 million views and 14,500 comments. Users chimed in under the video with their frugal hacks: surviving off Burger King survey rewards, eating kids’ meals as an adult, and dumpster diving for essentials. 

Another user shared the tricks young adults like herself pulled out during the 2008 recession. She divulged such tactics as sneaking into hotel buffets and grabbing extra condiments at restaurants to take home—potential inspiration for the young generation facing an economic crisis today. 

The ways Gen Zers are ‘recession-proofing’ their lives

While no generation is immune to an economic downturn, Gen Z is considered especially vulnerable. They’re the lowest on the workforce totem pole with the smallest salaries, often shackled with student debt, still trying to understand their finances as many generations before them did in their twenties. 

Moreover, Gen Zers don’t have the savings piled up that their Gen X counterparts do, so cutting back on spending in small ways has become a way to actively “recession-proof” their lives. 

One popular way young people have been sharing their saving hacks is through “no-buy lists,” detailing all the things they’re no longer splurging on during the recession. One user on TikTok shared her rejection roster: blankets, polyester “plastic” clothing, shoes, occasion outfits, trinkets, and accessories. She’s also opted out of salon visits—like nail and hair services—alongside buying home decor. Another user echoed her plans to cut back spending on clothes as well as vacations and dates. 

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  •  

    Beyond frivolous expenditures, Gen Zers are also shaving their spending on essentials to make ends meet.

    Gen Z ditching ‘doom spending’ amid financial fears

    Gen Z trends of “recession-proofing” and “no-buy lists” couldn’t be farther from the tune they were singing a few months ago. Their days of splurging on little luxuries may be over as the economy takes a turn for the worse.

    Young people were once known for “doom spending”: shelling out for pets, vacations, and clothes for short-term gratification. With the prospect of buying a home getting further out of reach and living costs reaching a fever pitch, these little dopamine hits help quell their economic anxieties. After all, Gen Zers are increasingly doubtful they’ll ever be able to afford the American Dream. But now, even the small luxuries are fast falling out of favor.

    Nearly 47% of Gen Z do not have an emergency fund, and 27% carry more debt than they do savings, according to a 2025 report from Bankrate. These entry-level professionals are feeling the squeeze at work, too; only 43% are positive about their employer’s business outlook for the next six months, according to a recent report from Glassdoor. That’s the lowest number—and weakest confidence—ever reported since data collection started in 2016.

    Not only are Gen Z wallets under a pinch, but their jobs may be, too. 

    “Entry-level workers have less job security,” Daniel Zhao, lead economist for Glassdoor, told Fortune. “As they see these economic headwinds on the horizon, there’s an understandable concern that they might be the first ones to lose their jobs in a recession, or they’ll be left out in the cold when trying to find a new job.”

    The Fortune 500 Innovation Forum will convene Fortune 500 executives, U.S. policy officials, top founders, and thought leaders to help define what’s next for the American economy, Nov. 16-17 in Detroit. Apply here.
    About the Author
    Emma Burleigh
    By Emma BurleighReporter, Success

    Emma Burleigh is a reporter at Fortune, covering success, careers, entrepreneurship, and personal finance. Before joining the Success desk, she co-authored Fortune’s CHRO Daily newsletter, extensively covering the workplace and the future of jobs. Emma has also written for publications including the Observer and The China Project, publishing long-form stories on culture, entertainment, and geopolitics. She has a joint-master’s degree from New York University in Global Journalism and East Asian Studies.

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